Does the Brain Balance agreement give any rights to third parties?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
- (k) FRANCHISEE is in breach of any of the agreements with supplier(s) designated by COMPANY for purchase of equipment, advertising materials, services or other supplies, products, and materials required for the operation of the Franchised Business; or
Likewise, all marketing vendors or service providers for FRANCHISEE must be approved in writing by COMPANY prior to being retained by FRANCHISEE.
By posting or submitting information or materials for the System Web site, FRANCHISEE is representing that the information and materials are accurate and not misleading and do not infringe upon any third party's rights.
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Brain Balance franchise agreement does address third-party relationships in several ways. Specifically, if a franchisee breaches agreements with suppliers designated by Brain Balance for equipment, advertising materials, services, or other required supplies, products, and materials, it can be considered a breach of the franchise agreement. This indicates that Brain Balance maintains some control and influence over the franchisee's dealings with specific third-party suppliers.
Additionally, Brain Balance requires that all marketing vendors or service providers used by the franchisee must be approved in writing by Brain Balance before being retained. This stipulation ensures that Brain Balance has oversight over who the franchisee engages with for marketing purposes, maintaining brand consistency and quality control.
Furthermore, the FDD states that Brain Balance franchisees must ensure that any information or materials they post or submit for the System Web site are accurate, not misleading, and do not infringe upon any third party's rights. This clause protects Brain Balance from potential legal issues arising from a franchisee's actions related to the website. These provisions collectively suggest that while franchisees operate their centers, Brain Balance retains certain rights and approval powers regarding their interactions with external parties, particularly suppliers and marketing vendors, to safeguard the brand and system standards.